State Franchise Registration Requirements in Montana

When considering whether you should franchise your business it is important to first decide if franchising is right for your business model. For those who have decided the answer to that question is "yes" or to those who are interested in expanding their franchise into a new state there are usually questions about making sure they are fulfilling the requirements put in place at the federal and state level.

In Montana there are no state laws that require a franchise to register, file or give notice to the state before selling franchise locations in Montana. It is important to recognize that there are still requirement that must be fulfilled to satisfy federal franchise laws. In order to avoid federal and state compliance issues it is recommended that consider hiring a franchise lawyer.

Disclosing a Franchisee in Montana

The Federal Trade Commission requires that every franchise have a franchise disclosure document prior to offering or selling any franchise locations in any state. The franchisor must disclose the franchisee at a minimum of 14 days before the sale occurs.

The Franchise Disclosure Document

A franchise disclosure document ("FDD") should not be taken lightly. This is not a generic document and is legally required in order to properly disclose information to the potential buyer prior to their purchase. It contains vital information about various aspects of the franchise opportunity. It is important to make sure the right information is properly being disclosed.